I traded the bounce off of S1 and got follow through to the daily pivot. A very rare perfect pivot trade. Setup: Market opened below Daily Pivot--Buy first bounce off of S1 Entry: 13697 (just above S1) Stop: 13687 (just below recent swing low) 1st Exit: 13707 (10 pts) Stop moved just below S1 pivot (13693) Descretionary exit: After price busted through Daily Pivot (13747) I moved my stop to just below the daily pivot (13744).
Annihilated today. A common perfect stop trade. Setup: Market gapped up just above R1 so the plan was to buy a breakout to the upside or a bounce off the Daily Pivot. Entry: 13739 (1 tick below the PP) Stop: 13729 (default when 89EMA is sideways). Exit: Stop hit at 13729 for -10 (2 contracts) In hind-sight, the two narrow range bars on the daily should have given me a heads-up to expect some sort of break-out today. The MAs on the 3m chart were clearly sideways too. Given the above and the fact I was short in my swing account, one has to wonder why I was so bias on the long side with this trade. Definitely a bungler trade today :^B
Yesterday's close was right around the 34EMA on the daily so I was a little unsure what the market wanted to do. Bounce up? Or cut through it and head down to test the 55 EMA? Either way, I wrote down on a piece of paper, "we are in a bull market!". 1st Setup: Market opened below Daily Pivot-- Guage price reaction to the daily 55EMA. if 55EMA holds, look to buy on break above S1. Look to sell if price rolls right through the daily 55EMA. Entry: Long @ 13545 (above S1) Stop: 13524 (21 points) Exit: 13555 (10 pts) Stop moved to most recent swing low (13568, 13589) Descretionary exit: Break of swing low 13589 **************** 2nd Setup: I hate trading the indices in the afternoon--my record is not very good. However, I decided to tag along with my trading partner and short the failed attempt at the daily pivot. ie (he has a better track record in the pm than I) Setup: Nice rally to the PP, but, the market failed twice to break it so we entered into a short using a 1-2-3 like setup. Entry: 13543 (below PP) Stop: 13564 (most recent swing high or 21 points--which ever is less) Exit: 13533 (10 pts) Stop moved to entry price Descretionary exit: Stop hit at entry price.
We trade by different methodologies, so keep that in mind. Maybe your trade was good in your methodology, I don't know. But I would definitely have been short on the 5th green bar if I wasn't short already. Thus your trade intrigues me. What made you want to go long? I don't have a strong grasp of Pivot Points, nor do I know why your charts are blue green and red. But it does looks to me like you are trying to catch a falling knife in your teeth. Thanks for any clarification. <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1507945">
Yeah, your are 100% correct. I don't have a good answer other than I was a bungler that day and got what I deserved. The bars are Heikin Ashi paint bars I wrote in TS. I added a filter to help identify bars that are retracing (green) or trendless (grey). Tx for the feed back!
Mr. Market went back to test the daily 55EMA again but failed to close below it. Next week could be interesting. 1st Setup: Neutral open with the price starting right around the Daily Pivot, however, price is below the 34 and 89 EMA. Slightly bearish bias after the open. Price got rejected at the 89 EMA and cut right through the pivot so I'll short a bounce off the daily pivot. Entry: short @ 13607 (break below low of high bar) Stop: 13524 (34 EMA) Exit: 13597 (10 pts) Stop moved to Entry Price Descretionary exit: Not much follow through on tape so I decided to bail on a close above the high of the most recent swing low. It's friday; I met my goal for the week; time to move on and enjoy the weekend!
Attached is a summary of the weeks total. 06/18/2007 = +10 pts 06/19/2007 = +33 pts 06/20/2007 = -10 pts 06/21/2007 = +27 pts 06/22/2007 = +19 pts Total = +81 pts Target = +50 pts Diff = +31 pts
Opened below the Daily Pivot and price nose-dived from there. Price didn't reach S1 before rallying above pivot. Grabbed +10 and +20 of the bounce during the dead zone.